Via journal online., Agriculture is inherently a risky enterprise because of its dependence on rainfall. To mitigate
risks, farmers diversify crops and enterprises, maintain stabilization account or resort to the sale of assets. Crop insurance is a complementary institutional mechanism that aids farmers to cope with risks better.Considering the importance of crop insurance in risk mitigation, this paper using data from a large-scale farmers’ survey we identify the factors that influence farmers’ decision to buy crop insurance and subsequently assess its impact on farm income, production expenses and productive investments in agriculture. Farmers’ adoption of crop insurance is low— 4.80% kharif season and 3.17% in the rabi season mainly on account of lack of awareness about insurance products. Nevertheless, the probability of adoption of insurance is higher for those who experience higher crop loss and have some formal training in agriculture. The subsidy on premium also positively influences crop insurance uptake decisions. On the other hand, the factors like the lower social status, tenant farming and exposure to deficit-rainfall in the previous year are negatively associated with the decision to insure. The results on the impact of insurance are not conclusive to prove that insured farmer subsumes higher risks compared to the uninsured.
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 116 Document Number: C11996
Journal Title Details:
1 page
Notes:
RIRDC completed projects in 1997-98:human capital, communications and information systems, Rural Industries Research & Development Corporation (RIRDC), Barton, ACT, Australia, 1998
Dean, Katie W. (author), Reames, Elizabeth S. (author), Tuuri, Georgianna (author), Keenan, Michael J. (author), Bankston, Joseph David, Jr. (author), Friendship, De'Shoin York (author), Mixon, Melissa P. (author), and Tucker, Easter H. (author)
Format:
Online article
Publication Date:
2008-08
Published:
USA
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 169 Document Number: C28401
Ranjan, Pranay (author), Wardroppe, Chloe B. (author), Eanes, Francis R. (author), Reddy, Sheila M. W. (author), Harden, Seth C. (author), Masuda, Yuta J. (author), and Prokopy, Linda S. (author)
Format:
Online journal article
Publication Date:
2019-01
Published:
USA: Science Direct
Location:
Agricultural Communications Documentation Center, Funk Library, University of Illinois Box: 8 Document Number: D10297
10 pages., Via online journal., Agricultural conservation programs often focus on farm operators when promoting conservation practices. However, much of U.S. farmland is owned by landowners not directly involved in farm operations. Rental arrangements on these lands can dis-incentivize the adoption of conservation practices that could improve soil health, water quality, and land values. To date, agricultural conservation policy has largely ignored the role of non-operating landowners (NOLs) and rental arrangements. We help improve the evidence-base for policy by identifying barriers to adoption of conservation practices on rented farmlands. Analysis of forty interviews with NOLs, operators, farm managers and university extension personnel in Iowa, Illinois, and Indiana revealed five categories of barriers: cash rent lease terms, rental market dynamics, information deficits/asymmetries, cognitive/interpersonal, and financial motivations. Some barriers, such as risk aversion and farm aesthetics were expressed by both NOLs and operators, while other barriers, such as status quo bias and annual renewal of leases were only expressed by NOLs and operators, respectively. To overcome barriers to conservation, interviewees recommended improving communication between NOLs and operators and modifying cash rent lease terms in order to build in flexibility for equitable sharing of risks and rewards. Agricultural conservation programs could readily apply these results—possibly working with intermediaries (e.g., farm managers, lawyers)—to offer communication and lease tools and assistance to NOLS and operators. Future research should evaluate the efficacy of these conservation interventions and how intermediaries affect the balance of power between NOLs and operators.
